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Growth in GDP: GDP growth in the first quarter of the current financial year was mainly inspired by good performance of the agricultural sector.
Growth in GDP: India’s economy grew at a rate of more than expected in April-June at a rate of 7.8 percent, which was its fastest speed among the five quarters. Before US President Donald Trump imposed tariffs, which are now blurring the approach, threatening major exports such as textile. According to the latest government data released on Friday, the growth of GDP in the first quarter of the current financial year was mainly inspired by good performance of the agriculture sector. Services like business, hotel, financial and real estate also helped. According to the data, the last highest speed to increase the GDP of the country was recorded at 8.4 percent during January-March 2024. India remains the fastest growing major economy, as China’s GDP growth during the April-June period was 5.2 percent.
3.7 percent increase in agriculture sector
According to data released by the National Statistics Office (NSO), the agriculture sector recorded an increase of 3.7 percent, which is more than 1.5 percent in the April-June period of 2024–25. However, the growth of manufacturing sector increased marginally to 7.7 percent in the first quarter of FY 26, while it was recorded 7.6 percent in the same period a year ago. Earlier this month, the Reserve Bank of India had estimated to be 6.5 percent of the actual GDP growth rate for 2025-26, with 6.5 percent in the first quarter, 6.7 percent in the second quarter, 6.6 percent in the third quarter and 6.3 percent in the fourth quarter. Commenting on official figures, the Chief Economist of ICRA, Head-Research and Outreach, Aditi Nair said that after unexpectedly strong performance in the first quarter of FY 2026, after an unexpected strong performance, a low year-on-year (yoy) speed of government capital expenditure and the impact on the export of American tariffs and fine will reduce the growth rate, even if the growth rate is reduced by the GST rationalization, even if the GST rationalization has been reduced by the GST rationalization.
8.8% increase in the first quarter of 2024-25
Said that amidst continuous uncertainty, we maintain our basic GDP development forecast for FY 2026 at 6.0 percent. The faster than expected GDP growth rate, which represents a boom compared to the previous quarter, has abolished all the expectations that tariffs can promote monetary relaxation in October. He said that the policy of 2025 will be reviewed. The NSO statement said that GDP is estimated to be Rs 47.89 lakh crore at real GDP or stable prices in the first quarter of FY 2025-26, while it was Rs 44.42 lakh crore in the first quarter of FY 2024-25, which shows a growth rate of 7.8 percent. Nominal GDP or GDP is estimated to be Rs 86.05 lakh crore at current prices in the first quarter of FY 2025-26, while in the first quarter of FY 2024-25 it was Rs 79.08 lakh crore in the first quarter, which shows an growth rate of 8.8 percent. It also states that mining and excavation (-3.1 percent) and electricity, gas, water supply and other utility services (0.5 percent) have seen the actual growth rate during the first quarter of FY 2025-26.
Increase rate in business, hotel, transport services
The tertiary sector has recorded a sufficient increase of 9.3 percent at stable prices in the first quarter of FY 2025-26. The tertiary sector includes services like business, hotel, transport, financial institutions, real estate, professional services, public administration and defense. The NSO also said that the final consumption expenditure (GFCE) has returned, which recorded a growth rate of 9.7 percent in the nominal context during the first quarter of FY 2025-26, while a growth rate of 4.0 percent was recorded in the first quarter of FY 2024-25. The actual private final consumption expenditure (PFCE) has recorded a growth rate of 7.0 percent during the quarter under review compared to the 8.3 percent growth rate in the same period of the previous financial year. Gross Stable Capital Construction (GFCF) has recorded a growth rate of 7.8 percent on stable prices, while the growth rate in the first quarter of FY 2025 was 6.7 percent. During the first quarter of this financial year, discrepancies (the difference in calculated values using various methods of GDP estimate) increased to Rs 1.11 lakh crore, which was Rs 33,384 crore in the same period a year ago.
